Insider Buying Volume Hitting Historic Lows Should Not Worry Investors; Noteworthy Insider Transactions at 5 Companies

Freshly-Appointed Board Member of U.S. Distributor of Roofing Materials Buys Shares

Beacon Roofing Supply Inc. (NASDAQ:BECN) also saw a member of its Board purchase some shares this week. Freshly-appointed Director Robert M. McLaughlin snapped up a new stake of 6,000 shares on Tuesday at a price tag of $45.79 each.

The shares of the second-largest distributor of residential and non-residential roofing materials in the United States and Canada are 11% in the green thus far in 2016. Last October, Beacon Roofing Supply Inc. (NASDAQ:BECN) completed its $1.2 billion-acquisition of roofing products distributor Roofing Supply Group, a deal that strengthened the acquirer’s position as the largest publicly-traded roofing materials distributor in the nation. As a result, the company’s net sales for the three months that ended June 30 increased to $1.15 billion from $718.21 million posted a year earlier. However, Beacon Roofing Supply’s existing market sales grew by an impressive 8.7% year-over-year, partially reflecting increased demand in residential, non-residential and complementary products groups, as well as strong storm activity across the Southwestern U.S. this year. Eduardo Abush’s Waterfront Capital Partners added a 330,129-share position in Beacon Roofing Supply Inc. (NASDAQ:BECN) to its portfolio during the June quarter.

Insider Buying Registered at Mortgage Insurer Amid Takeover Rumors

Radian Group Inc. (NYSE:RDN) had a member of its executive team pile up some shares earlier this week. Derek V. Brummer, Chief Risk Officer and Executive Vice President, purchased 1,000 shares for $12.92 each and 15,000 shares at $12.87 apiece on Wednesday, lifting his overall holding to 41,853 shares.

The provider of mortgage insurance, products and services to the real estate and mortgage finance industries has lost 3% of its market cap since the start of the year. The revitalized housing market and more rigorous lending standards put in place after the painful financial crisis have lightened the prospects for mortgage insurers such as Radian Group Inc. (NYSE:RDN). Barclays analysts anticipate “a supercycle for mortgage credit that seems unlikely to be derailed by a recession,” so Radian shares appear to have more room to run in the years ahead. The company’s CEO S. A. Ibrahim recently announced that he will step down from his role at the end of 2017. While the company’s Board is currently searching for a successor, it is rumored that mortgage insurer Essent Group Ltd (NYSE:ESNT) is interested in inking a merger deal with Radian. Royce & Associates, founded by Chuck Royce, acquired a new stake of 130,000 shares of Radian Group Inc. (NYSE:RDN) during the June quarter.

The final page of the article will discuss the fresh insider selling witnessed at two other companies.